The open interest of Dogecoins has been on a massive free fall for some time, while the Memecoin continues fight to gain interest in investors. The data show that Dogecoin’s open interest has decreased sharply since the beginning of March and has not been seen at stages since November 2024. The fast distance that is pursued with data from Coinglass reflects a significant reduction in Leveraged positions and the dealer appetite for the King of Memecoins.
Three months
Open interest is crucial When measuring interest in an asset, which in turn helps to predict price movements. In the case of Dogecoin, his open interest reflects a trend of little interest. After the climax on January 18, Dotecoins has an open interest Was on a relentless freedom with price Action reflects this downward trend. Dotecoins steadily evaporated since mid -January and fell from several months to a level that is now comparable shortly before the price rally of the fourth quarter of last year.
After Coinglass dataThe reduction was not abruptly, but pulled out in the past two months, which was emphasized by a continued exit from dealers and a cooling of the bullish mood on the derivative market. This is the feeling that the price for the rest of the cryptom market is deleted from a further decline in the Dotecoin price. At the time of the letter, the Open interest of Dogecoin is 1.6 billion US dollars and 70.5% below the high high of 5.42 billion dollars on January 18.
Potential effects on the future price movement of DOGES
The persistent decline in Dogecoin’s open interest has a number of effects on its future price direction, especially in connection with dynamics and liquidity in the derivative market.
Open interest is often used to evaluate the strength of a trend (whether upwards or down), and sharp reductions usually indicate that retailers come to the upward trend due to stop-without triggers, liquidations and no longer on the asset.
In theory, a decline in Dogecoin’s open interest indicates a corresponding reduction in liquidity, which can also damage any price upward trend. An increase in open interest, on the other hand, is a final increase in liquidity.
After the open interest has returned to his November 2024, this means that liquidity and mood that surround the Meme coin Every potential upward trend from here.
At the time of writing, Dotecoin acts at $ 0.1684, which has increased by 0.52% in the past 24 hours. However, the wider trend remains negative, with the meme coin fell by 34% in the past 30 days. This extended Drawdown also had consequences for Dotecoin’s stand on the wider market, And it has now been overtaken by Cardano in terms of market capitalization.
Selected picture of Dall-E, Diagram from Tradingview
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